Minimising the risk of employer compliance visits

At Stringer Mallard we can help companies in the Harrogate area to ensure their PAYE affairs are in order and minimise the risk of an employer compliance visit.

Because HM Revenue & Customs (HMRC) seeks to concentrate its resources in areas where it considers tax is being lost, it has in recent years increased the nature and scope of compliance visits.

The purpose of compliance visits is to confirm that PAYE has been properly operated on all earnings and payments in accordance with the rules and regulations operational, as set out in the booklet, Employer's Further Guide to PAYE and NICs (CWG2).

HMRC's visit will be to your business premises and is likely to check:

PAYE deduction working sheets for completeness and accuracy

Correct use of employee codes

Reconciliation of the records with the Final FPS (Full Payment Submission) and/or EPS (Employer Payment Summary) for the tax year

Trips for purposes other than purely business, e.g. trade fairs, golf, social outings

Home telephone

Entertaining

Expenses for use of home as an office

Club subscriptions

Goods and services provided free or below market value

Luncheon expenses

Clothing

Accommodation

Work undertaken at an employee's home

Medical expenses

Casual labour

Under the system of RTI, HMRC require employers to complete a New Starter Checklist for all casual employees. This checklist replaces the form P46, which is no longer completed under RTI. The checklist provides the information needed to correctly operate PAYE for a new employee. The checklist can also be used to help fill in the first Full Payment Submission (FPS) for the employee. If the employee signs that it is his or her first job since last 6 April, then PAYE and NI need not be deducted unless the payment is in excess of the NI primary threshold, currently £166 per week. HMRC expect employers to keep this information for three years. Where the checklists have not been completed HMRC may seek to charge employers for tax and NI contributions on the grossed-up amount of these payments, often regardless of whether or not any tax has actually been lost to HMRC.

Whether or not tax or NI is payable, you must keep proper records of payments and persons paid.

Settlement

The majority of compliance visits result in some discrepancies being uncovered, and HMRC will usually calculate the 'lost' tax and NI over a period of six years plus the current year. This period may be extended if they suspect that deductions have been withheld deliberately. HMRC may also seek penalties, although these will normally depend on the gravity of the discrepancy and the existence or absence of 'reasonable care'.

How can we help?

We can assist in reviewing your wage and salary records with a view to identifying possible areas of non-compliance with PAYE and NI regulations. If a visit is made we can advise on, and assist in, negotiating a settlement with HMRC.

If you have responsibility for administering PAYE and NICs in the Harrogate area and are concerned about facing an employer compliance visit, Stringer Mallard can assist you.

What our clients say

“ I use Stringer Mallard for several of my businesses and have found them to be a friendly, supportive and professional team that are happy to help.

The combined knowledge and experience within the team mean that my queries are always answered and I feel confident in the answers that they give. The services that they provide are tailored to me and my businesses rather than a ‘one size fits all’ approach. I have found them to be flexible and willing to work with me, providing valuable insights into my business. ”

Jason Clay - Director - Quarters Developments Ltd

“ I have used Stringer Mallard for many years and they have provided an outstanding quality service tailored to my business requirements. I would highly recommend them to anyone looking for an accountant who can explain things in plain English. I can discuss all my business matters with them and find their advice most helpful. They have played a leading role in the evolution of my businesses over the last few years. ”

Paul Walker - Managing Director - Auto VIP

“ We have used the services of Stringer Mallard for many years within our training business and have always found the service to be excellent! Stringer Mallard’s approach is extremely entrepreneurial and we have found their business advice to be invaluable. I would have no hesitation in recommending Stringer Mallard’s services and have indeed done so to many of my associates and friends. ”

Paul Hughes - Director - Hughes Training Solutions Ltd

“ We have been with Stringer Mallard for several years and they have a great team who have dealt with our financial affairs efficiently and professionally, whilst being very friendly and approachable. Andrew is always available to discuss our business and is a valuable source of impartial advice. ”

“ Working in the Financial Services arena ourselves, we need an Accountancy practice that not only understand the technical and legislative side of our industry but also appreciate the importance of the personal service side and building a relationship based on trust and sound advice. Stringer Mallard are able to provide all of this and at a price that is very competitive with the big high street firms! It’s a cliché but they really are big enough to cope but small enough to care. ”

Kirk James - Director - Lofthouse Gate

“ I have worked with Stringer Mallard for several years now and have found them to be professional, approachable and very knowledgeable. They are always on hand for any queries and have shown an interest in my business that I have not experienced elsewhere. I would have no hesitation in recommending Stringer Mallard to my friends and associates. ”

Nigel Coughlan - Director - COW Hold Ltd

“ I moved to Stringer Mallard several years ago, when I faced a challenging situation in my retail business. I found Andrew Stringer to have a level headed and optimistic and enthusiastic approach to my particular problem. He was connected well enough to arrange meetings that led to me being able to get back on track with renewed confidence. With a plan, support from a new bank and with Andrew’s very personal support to myself and my business, I was able to drive the business forward, which has since tripled in turnover and quadrupled in net profits. This in turn however attracted bigger tax liabilities. Stringer Mallard have a tax planning specialism. I would only work with a company and a scheme that operates both within the law and one that has an in depth and thorough understanding of tax law. ”

Jeremy Beaumont - Rhodes-Wood Ltd

“ We have employed the services of Stringer Mallard since 2004, Andrew and his team have helped Clean And Tidy expand our business with their professional and direct approach to our accountancy requirements. They have advised us on all aspects of our business and helped us with ideas and how to grow our business. It is very valuable to have someone there who you can call at anytime and get the right advice or be pointed in the right direction. They make things happen. We highly recommend the services of Stringer Mallard. ”

C A Tolmie - Director - Clean and Tidy

“ Stringer Mallard have been our accountants in the UK for 15 years and during that time they have been an important factor in the growth of our business. Funville started from nothing eight years ago and has grown every year since. Our relationship is simple; if we have a problem or a strategic decision to make, we call them and they are involved from start to finish. Their advice and input is simply invaluable and of great importance to us. ”

Stringer Mallard, Harrogate Accountants

We recognise that being in business, especially leading a business, can be an isolating experience. We are your business partner for all the decisions you have to make, genuinely assisting in bringing to life your goals and ambitions.